Russ Savage, the billionaire founder of Rockstar Energy, has accumulated more than 12 million shares of Celsius Holdings, representing approximately 4.7% of the company with a value of about $300 million at current market prices. Savage sold Rockstar to PepsiCo in 2020 for over $4 billion and has now become a significant shareholder in the energy drink company.
Savage is publicly advocating for major leadership changes at Celsius, specifically calling for the removal of the CEO, chief operating officer, brand manager, and marketing manager. He claims to have offered strategic advice to company leadership for over a year regarding cost structure and marketing adjustments, but says his recommendations were largely ignored. Savage has volunteered to assume the CEO position himself and implement changes he believes are necessary to restore the company’s trajectory.
The activist shareholder move follows Celsius’s disappointing second-quarter earnings results announced this week. The company reported earnings of 36 cents per share against analyst expectations of 43 cents, while revenue reached $817.9 million below the anticipated $870 million. Celsius shares declined 18% following the announcement. CEO John Fieldly attributed the shortfall to a product rationalization program and deliberate pause in innovation as the company manages the integration of recent acquisitions, including Alani Nu and the Rockstar brand in North America.
Savage argues that Celsius management has mishandled the company’s market position, particularly by ceding retail shelf space that will be difficult to reclaim in the competitive energy drink sector. He contends that the company’s organizational structure involves excessive layers of management without clear accountability. Celsius management responded by stating they welcome value-creating ideas from shareholders and highlighted the company’s continued market strength, noting it commands one in every five energy drink sales in the United States.
Savage began accumulating his most recent Celsius stake in March when the stock traded in the low $30 range. The stock now trades around $27 per share, with recent gains following disclosure of his significant shareholding.
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